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NNPC announces discovery of crude oil in North-East

The Nigerian National Petroleum Corporation on Friday announced the discovery of hydrocarbon deposits (crude oil) in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North-Eastern part of the country.

Recall that drilling of the Kolmani River II Well was flagged-off by President Muhammadu Buhari on February 2, 2019.
A statement by the corporation’s Acting Group General Manager, Group Public Affairs Division, Samson Makoji, stated that NNPC acquired 435.54km2 of 3D Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin.

This was to evaluate Shell Nigeria Exploration and Production Company Kolmani River 1 Well Discovery of 33 BCF and explore deeper levels.
The well was drilled with “IKENGA RIG 101” to a total depth of 13,701feet encountering oil and gas in several levels.
A Drill Stem Test is currently on-going to confirm the commercial viability and flow of the Kolmani River reservoirs.
The corporation explained that on Thursday, October 10, 2019, at 18:02hours, one of the reservoirs was perforated and hydrocarbon started flowing to the well head at 21:20hours in which the gas component was flared to prevent air charge around the Rig.
Preliminary reports indicate that the discovery consists of gas, condensate and light sweet oil of API gravity ranging from 38 to 41 found in stacked siliciclastic cretaceous reservoirs of Yolde, Bima Sandstone and Pre-Bima formations.
“Computation of hydrocarbon volume is on-going and will be announced in due course,” the statement indicated.
The corporation said it had also acquired additional 1183km2 of 3D seismic data over highly prospective areas of Gongola Basin with a view to evaluating the full hydrocarbon potential of the Basin.
NNPC stated that it deployed technologies including Surface Geochemistry, Ground Gravity/Magnetic, Stress Field Detection, Full Tensor Gradiometry aerial surveys to de-risk exploration in the frontier basins.
It said it plans to drill additional wells for full evaluation of the hydrocarbon volume in the Gongola Basin.
During the spud-in ceremony of Kolmani River II, Buhari stated the commitment of his administration to the exploration for oil and gas in the frontier basins in the entire length and breadth of the country.
The basins include the Benue Trough, Chad Basin, Sokoto and Bida Basins.
He also stated that attention would be given to the Dahomey and Anambra Basins which had already witnessed oil and gas discoveries.
According to NNPC, the discovery of oil and gas in commercial quantity in the Gongola Basin will attract foreign investment, generate employment for people to earn income and increase government revenues.
Meanwhile, NNPC on Friday signed a $2.5bn pre-payment agreement with the Nigeria Liquefied Natural Gas company for upstream gas development projects to supply gas to the NLNG Trains 1 to 6.
It urged shareholders of the NLNG to work very quickly towards expanding the production capacity of the company beyond Train 7 in order to take advantage of developments in the global LNG market.
The Group Managing Director of the NNPC, Mele Kyari, gave the charge in Abuja during the signing of the agreement.
Kyari said the agreement would help to resolve the issues around gas supply to Trains 1 – 6, adding that there was a need to fasttrack action on the process of bringing more trains on stream.
He was quoted in a statement issued by the oil firm as saying, “Here at NNPC, we are thinking beyond Train 7; if your ambition is Train 7.”
Kyari noted that although the NLNG had been a huge success as a company, it must go beyond its current achievements and initiate other viable projects capable of generating better return on investment.
The Managing Director, NLNG, Tony Attah, said the signing of the gas supply pre-payment agreement was a significant step towards ensuring the company’s business sustainability and competitiveness.
The signing of the gas supply pre-payment agreement was witnessed by the Country Chairman of Shell Companies in Nigeria, Osagie Okunbor, and representatives of Total, Eni/NAOC, among others.